BP Invests $1 Billion to Extend Life of UK North Sea Assets

BP today announced that the Company will invest $1 billion (£670 million) in its North Sea assets.

The investment will prolong the life of the Eastern Trough Area Project, a network of nine oil and gas fields (of which BP operates six), and should see it continue until 2030.

The investment follows tax breaks and initiatives amounting to £1.3 billion of relief for the UK oil and gas industry, introduced by chancellor George Osborne earlier this year.

BP’s North Sea Regional President Trevor Garlick said:

‘These are challenging times for the industry and we are having to make hard choices.’

‘Nonetheless, we remain committed to improving the competitiveness of the North Sea and to maximising economic recovery from our fields.’

‘BP’s primary areas of focus are the west of Shetland and central North Sea, where we are investing in both new developments such as Clair Ridge and Quad204, and in extending the life of our mature assets.’

‘Two weeks ago we welcomed the arrival of the Safe Caledonia flotel into the ETAP area, launching the start of a major investment programme to renew the platform and extend its field life.’

‘In parallel, we are drilling new wells on ETAP’s Machar and Marnock fields, replacing subsea infrastructure, and deploying new technologies to help maximise the fields’ recovery.’

‘ETAP holds significant potential and we are working to ensure its reliability, efficiency and long-term competitiveness. This project will secure the future of the field until 2030 and beyond.’

Oil & Gas UK’s chief executive Deirdre Michie commented:

‘Oil & Gas UK is pleased to welcome BP’s announcement today of a $1billion investment in its Eastern Trough Area Project, securing the project’s future for a further 15 years to 2030.

‘According to figures from the Department for Energy, the country’s primary demand for oil and gas, critical for our transport and heating and powering our homes, is set to remain unchanged until 2030 at least. It is encouraging to see the continuing investment BP is making in its North Sea assets and projects to deliver a secure indigenous supply of energy for the country.

‘Given the harsh business environment upstream oil and gas companies currently face, with the oil price more than halved since this time last year, industry as a whole is putting a great deal of effort into improving the performance of its assets – and that is something we’ll look to explore in further detail in our 2015 Economic Report next month.’